KUALA LUMPUR: Shares in Pelangi Publishing Group Bhd rose to its highest in seven months following a privatisation offer from its controlling shareholders.
The textbook publisher rose 19.23%, or five sen to 31 sen, highest in seven months.
The controlling shareholder, Datuk Sum Kown Cheek, who is also the company’s executive chairman and managing director, has written to Pelangi’s board of directors to notify his intention to take the company private via capital repayment of 36.5 sen per share.
Sum together with his wife Datin Lai Swee Chiung plus parties acting in concert, Datuk Sam Yuen, who is Sum’s brother, and his spouse Datin Goh Pek Hen, collectively own 37.53 million shares or a 38.86% stake in Pelangi.
The 36.5 sen capital payment represents a 32.39% to 40.38% premium over its one-year, six-month, three-month, one-month, five-day volume weighted average price (VWAP) and yesterday’s closing price. The stock was last traded at 26 sen.
The capital repayment will cost RM25.03mil. As at June 30, Pelangi’s cash balance stood at RM9.11mil plus short term investment of RM2.61mil.
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